USDJPY made a nice reversal down from the 113.81 high, which was expected, as we were tracking an expanding diagonal in wave v of C. Current drop, we labeled as wave i)/a), which found a base at the 112.94 level, from where we now see price unfolding a corrective recovery. This can be labeled as wave b)/ii) that can look for resistance near the 113.4/113.50 region with its three-wave rally.

A later drop in impulsive fashion from the mentioned region would suggest more weakness for the pair.

USDJPY, 1h

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